Scottish universities offer highest buy-to-let yields

18 August 2020 | General

The Scottish universities of Dundee, Aberdeen, and Strathclyde offer the best buy-to-let yields among the UK’s top institutions, Howsy research has found.

Dundee offers rental yields of 7.2%, followed by 6.8% in Aberdeen and 6.62% in Glasgow.

In Dundee typical house prices are £146,000, with typical rents costing £876 per month.

Outside of Scotland, the University of Leicester ranks as the best buy-to-let option in England, with a current average yield of 6.6% in the LE1 postcode.

Calum Brannan, founder and chief executive of Howsy, said: “Many students will be searching for accommodation now that they know where they stand with their results and this huge influx of demand is very positive news for buy-to-let landlords in uni towns across the UK.

“Of course, student tenants can have their downfalls, but so can any tenant in the rental space and the pros far outweigh the cons in terms of the carousel of consistent demand and income that they supply.

“With many of the top universities not only attracting the best students but also providing rental yields way above the UK average, a university buy-to-let could be the key to a profitable investment in what are otherwise tough times for landlords at present.”

On average university rental yields sit at 4.4% across the UK.

Properties near London universities are the worst, in terms of yields.

Rents near Imperial College London for example offer a typical return of just 1.7% for investors.

This post has originally been featured in Property Wire.